A Taxpayer-Funded Smear Job of Professor James Buchanan

My daily columns usually revolve around public policy issues such as tax reform, entitlements, and corrupt government. And while sometimes get a bit agitated about bad things in Washington, it’s because I’m a curmudgeonly libertarian, not because of some personal stake (other than being an oppressed taxpayer).

But sometimes there is a personal connection, like when I responded to the Washington Post‘s front-page attack on the Center for Freedom and Prosperity, a group that I founded.

Today, I’m writing because of a different kind of personal connection. I got my Ph.D. from George Mason University, and one of the great parts of that experience was taking a couple of classes from James Buchanan, who won the Nobel Prize shortly after I arrived on campus.

Professor Buchanan was more than an economist. He was also a social philosopher. He thought big thoughts and cared deeply about a free society. I didn’t have the opportunity to develop a close relationship with Buchanan, but I felt privileged to take his classes and also to hear his insights in various conferences and colloquia during my years on campus.

I’ll openly admit at this point I have not read the book. I would, if somebody gave me a free copy, but I have no desire to potentially generate royalties for Ms. MacLean by spending money for a copy.

But a review in the Atlantic is a good example of why I think the book merits condemnation.

Nancy MacLean’s Democracy in Chains is part of a new wave of historiography that has been examining the southern roots of modern conservatism. …Her book includes familiar villains—principally the Koch brothers—and devotes many pages to think tanks like the Cato Institute and the Heritage Foundation, whose ideological programs are hardly a secret. But what sets Democracy in Chains apart is that it begins in the South, and emphasizes a genuinely original and very influential political thinker, the economist James M. Buchanan. …she has dug deep into her material—not just Buchanan’s voluminous, unsorted papers, but other archives, too—and she has made powerful and disturbing use of it all.

And what did she find that was so disturbing?

Brace yourself, because the giant scandal that she uncovered is that – gasp! – Buchanan was a classical liberal who believed in small government. And he consorted with other intellectuals with similar views.

The behind-the-scenes days and works of Buchanan show how much deliberation and persistence—in the face of formidable opposition—underlie the antigoverning politics ascendant today. …the University of Chicago, where Buchanan received his doctorate in 1948. During the postwar years, other faculty included Hayek and Friedman, who were shaping a new pro-market economics, part of a growing backlash against the policies of the New Deal. Hayek initiated Buchanan into the Mont Pelerin Society, the select group of intellectuals who convened periodically to talk and plot libertarian doctrine.

But here’s the disgusting part of the book, at least if the review accurately reflects the contents. MacLean does her best to imply that Buchanan somehow must be a racist. In part because of where he was born and raised.

Buchanan owed his tenacity to blood and soil and upbringing. Born in 1919 on a family farm in Tennessee.

By the way, the term “blood and soil” has very odious connotations. I don’t know if that term is used in the book. If not, then the reviewer, Sam Tanenhaus, is the one who deserves condemnation.

The book also implies that Buchanan is racist because he tried to take advantage of Virginia’s desegregation battle to push for school choice.

Buchanan played a part, MacLean writes, by teaming up with another new University of Virginia hire, G. Warren Nutter (who was later a close adviser to Barry Goldwater), on an influential paper. In it they argued that the crux of the desegregation problem was that “state run” schools had become a “monopoly,” which could be broken by privatization. If authorities sold off school buildings and equipment, and limited their own involvement in education to setting minimum standards, then all different kinds of schools might blossom.

And why is this supposed to be racist?

Because some rednecks might choose schools without black people.

…these schemes were…gave ammunition to southern policy makers looking to mount the nonracial case for maintaining Jim Crow in a new form. Friedman himself left race completely out of it. Buchanan did too at first, telling skeptical colleagues in the North that the “transcendent issue” had nothing to do with race; it came down to the question of “whether the federal government shall dictate the solutions.” But in their paper (initially a document submitted to a Virginia education commission and soon published in a Richmond newspaper), Buchanan and Nutter were more direct, stating their belief that “every individual should be free to associate with persons of his own choosing”.

In other words, we’re supposed to believe that Buchanan was racist simply because some people – in a system based on freedom of choice – might make race-based decisions.

But that’s like saying advocates of free speech are racist because some people will make racist statements or write racist books.

For what it’s worth, I wish the racist Democrats who controlled the state in the 1950s had adopted school choice. After all, the ultimate effect of their actions would have been very beneficial for black students.

That would have been delicious irony.

But I’m digressing. I wonder whether Tannenhaus is the one who is guilty of smearing rather than the author. His review, after all, notes that MacLean apparently didn’t think Buchanan’s work was motivated by race.

…race, MacLean acknowledges, was not ultimately a major issue for Buchanan.

The review then shifts to Buchanan’s main intellectual legacy, the “public choice” school of economics (first formally proposed in Calculus of Consent, co-authored with Gordon Tullock).

Governments, they argued, were being assessed in the wrong way. The error was a legacy of New Deal thinking, which glorified elected officials and career bureaucrats as disinterested servants of the public good, despite the obvious coercive effects of the programs they put into place. Why not instead see politicians and government administrators as self-interested players in the marketplace, trying to “maximize their utility”—that is, win the next election or enlarge their department’s budget? This idea turned the whole notion of a beneficent government, and of programs and policies designed more or less selflessly, into a kind of fairy tale expertly woven by politicians and their flacks. Not that politicians were evil. They were looking out for themselves, as most of us do. The difference was in the damage they did.

Sounds quite reasonable to me. And Tanenhaus even grants that the theory has some merit.

You didn’t have to accept Buchanan’s ideology to see that he had a point about the growth of government-centered clientelism—“dependency,” in the term used by a new wave of neoconservatives such as Daniel Patrick Moynihan.

But he then is very critical of Buchanan’s support for rules to constrain government.

The enemy was the public itself, expressed through the tyranny of majority rule… It wasn’t enough to elect true-believing politicians. The rules of government needed to be rewritten.

Now let’s address a second part of the book that irked me. The author links Buchanan to Chile, which to a leftist is an automatic sign of guilt.

…in Chile, after Augusto Pinochet’s coup against the socialist Salvador Allende in 1973. A vogue for public choice had swept Pinochet’s administration. Buchanan’s books were translated, and some of his acolytes helped restructure Chile’s economy. Labor unions were banned, and social security and health care were both privatized. On a week-long visit in 1980, Buchanan gave formal lectures to “top representatives of a governing elite that melded the military and the corporate world,” MacLean reports, and he dispensed counsel in private conversations.

There’s no evidence, from what I can tell, that Buchanan endorsed or supported Pinochet’s bad record on human rights. Instead, he’s simply “guilty” of encouraging a bad government to adopt good policy.

But if providing policy advice supposedly implies support for everything a government does, then I’m guilty of supporting Russia, China, and many other regimes. Needless to say, that’s nonsense.

In any event, here’s the part that doesn’t make sense.

Buchanan said very little about his part in assisting Chile’s reformers—and he said very little, too, when the country’s economy cratered, and Pinochet at last fired the Buchananites.

Now let’s look at some excerpts from a review in Slate written by Rebecca Onion. It starts with a major smear.

When the Supreme Court decided, in the 1954 case of Brown vs. Board of Education, that segregated public schools were unconstitutional, Tennessee-born economist James McGill Buchanan was horrified.

Again, I haven’t read the book. But I have to imagine that if the author had the slightest bit of evidence, one of the reviews would have shared it. Instead, we get nothing but assertions. Is MacLean the one who smears Buchanan, or are the reviewers guilty of asserting that the Nobel Laureate is somehow racist because he doesn’t support a big welfare state?

I don’t know, but someone is being grossly unfair.

For what it’s worth, I never caught even the slightest whiff of racism from Buchanan during my time at GMU. Which stands to reason since libertarians and classical liberals are all about individual rights and view racism as a form of collectivism.

But it is true that Buchanan was not a fan of big government.

…the libertarian thinker found comfortable homes at a series of research universities and spent his time articulating a new grand vision of American society, a country in which government would be close to nonexistent, and would have no obligation to provide education—or health care, or old-age support, or food, or housing—to anyone.

Ms. Onion’s review includes a Q&A section with the author.

Here’s some of what MacLean said, starting with a description of public choice.

He had a very different personality from somebody like Milton Friedman. …His books were really written for other scholars, not so much the general public. …His basic idea is that people had been wrong to think of political actors as concerned with the common good or the public interest, when in fact, according to Buchanan’s way of looking at things, everyone should be understood as a self-interested actor seeking their own advantage.

She then asserts – with no evidence – that public choice isn’t an accurate way of describing the world.

…there were other people who actually tested that empirically and found out that it didn’t hold, so it’s really a caricature of the political process, but it’s a caricature that’s become very, very widespread right now.

…he went from writing that to advising the Pinochet junta in Chile on how to craft their constitution. This document was later called a “constitution of locks and bolts,” [and was designed] to make it so that the majority couldn’t make its will felt in the political system, unless it was a huge supermajority. So yeah, it’s pretty dark.

Buchanan helped with the founding of the Cato Institute and with various other intellectual enterprises that were close to Charles Koch’s heart, like this thing called the Institute for Humane Studies.

She then plays armchair psychologist and tries to guess Buchanan’s real motivation. After all, surely he couldn’t have been motivated by a belief in liberty and limited government?

I think it’s also much more about this psychology of threatened domination. People who believe it will harm their liberty for other people to have full citizenship and be able to work together to govern society. And that somehow that goes much deeper than money to me. It’s hard to find the right words for it, but it’s a whole way of being in the world and seeing others. Assuming one’s right to dominate.

In other words, if you don’t want a tax-and-transfer welfare state, that means you want to dominate others. Amazing bit of mind reading.

Or perhaps a bit of projection.

It’s folks on the left, after all, who concoct strange theories involving Koch, Cato, and other parts of a vast libertarian conspiracy.

If we really had that much power, I can assure you that government would be much smaller than it is today.

Here’s what MacLean says about Buchanan being part of the supposedly sinister Koch network.

The most important thing I want readers to take from this book is an understanding that the Koch network and all of these people are doing what they’re doing because they understand that their ideas make them a permanent minority. They cannot win if they are honest about what they’re doing.

Let’s close by sharing some very bizarre passages from a review by Genevieve Valentine for NPR.

…economist James Buchanan — an early herald of libertarianism — began to cultivate a group of like-minded thinkers with the goal of changing government. This ideology eventually reached the billionaire Charles Koch… This sixty-year campaign to make libertarianism mainstream…is at the heart of Democracy in Chains.

Here’s Ms. Valentine’s contribution to gutter politics.

…this isn’t the first time Nancy MacLean has investigated the dark side of the American conservative movement (she also wrote Behind the Mask of Chivalry: The Making of the Second Ku Klux Klan).

A collectivist-minded group like the KKK was part of the conservative movement? Is there any evidence for that slanderous assertion?

Of course not.

And besides, what would that have to do with libertarianism?

But Ms. Valentine is just warming up. Did you know that libertarians somehow are at fault for the incompetence of Flint, MI, which is governed by Democrats?

As MacLean lays out in their own words, these men developed a strategy of misinformation and lying about outcomes until they had enough power that the public couldn’t retaliate against policies libertarians knew were destructive. (Look no further than Flint, MacLean says, where the Koch-funded Mackinac Center was behind policies that led to the water crisis.)

And she repeats the crazy assertion that Chile’s shift to free markets backfired, even though the economy boomed and subsequent governments dominated by Social Democrats have left the reforms in place.

By the time we reach Buchanan’s role in the rise of Chilean strongman Augusto Pinochet (which backfired so badly on the people of Chile that Buchanan remained silent about it for the rest of his life), that’s all you need to know about who Buchanan was.

It’s also remarkable that she wants us to think there’s something sinister about Buchanan remaining “silent” about his role in Chile.

This is a man who gave dozens of speeches every year in countries all over the world, while also producing all sorts of books and scholarly articles. Does she really think he was supposed to spend his time reminiscing about a couple of speeches and meetings back in 1980?

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29 Responses

How can anyone review a book that they haven’t read? How can a so-called review have value and be respected when the review is based on others’ reviews? Incredible! Logic says this kind of review is nothing more than hyperbole and not worth the paper they’re written on.

Having been a Wisconsin teacher for over a decade, I’ve seen the divide-and-conquer progression from killing the teacher’s union, to right to work, to school vouchers, the fake budget crisis that was used to explain it away, approximately $800 million cut from education, demoralizing of UW system professors, and more. Now the Janus case reflects on the federal level what was practiced in WI. Attempts to subvert clean air, water, and land regulations that would leave local landowners living in pollution… gerrymandering that resulted in our representation in state politics to be grossly lopsided. Our state has been a petri dish for long term plans on the federal level. Who has been funding this push? Club for Growth, Concerned Veterans, Americans for Prosperity, etc. Who funds them (tax deducted)?
I politely request that you stop “talking” down to me, as I have not done that. I have lived in various parts of our country, retired from over 22 years in the Guard/Reserve, taught children who others found unteachable, and have enough life experiences to see from more than one perspective. I do not believe in evil, only in individual intent to act. I have ridden in government helicopters.
Just because you would be happy with lower taxes and fewer services doesn’t mean those services aren’t important to someone. Our neighborhood needs to have its streets repaved. I use the library. The police and fire dept. come when we call them. People who work 40 to 60 hours a week need some help paying for heat in the winter here: that’s fine, they might be fixing my sandwich at Subway or stocking shelves at the grocery. The lady at the DMV needs a job, so we pay her.
Is your life comfortable? Do you have an average IQ and abilities? Debilitating injury or illness? A spouse who beats you? Drought threatens the loss of your family farm? I think that if our government can be helpful for those who need ordinary service or sometimes extraordinary services to diminish human need or suffering, okay. I prefer “we are all in this together” to dog-eat-dog. Not everyone can get a high paying job, or has wealthy donors who fund our livelihood. I prefer the safety net. I also would like to see MORE government if it leads to people having jobs, a place to live, food to eat, education,and medical care.
Buchanan may have been a friendly guy in person. He may have written some intelligent works (Nobel prize…) MacLean’s claim is that he was a major voice in the blueprint to privatize and deregulate everything. Read the book. It is thoroughly researched. I borrowed it from the public library.

Patrick, I stand by what I said. Multiple people who knew or worked with Buchanan have pointed out many aspects of the book that are directly refuted by Buchanan’s own work, as if she did not read his work.

You’re allowed to believe in whatever world you want. It sounds very shadowy and conspiratorial, dominated by the eeevil Koch brothers and large corporations. Be careful what you type, the black helicopters might be coming for you.

Me, I’d be quite happy with lower taxes and less services provided by government. No doubt, that makes me a vicious imperialist taking my marching orders from the Koch brothers.

What she did was, after Buchanan had died, go through his written works and correspondence that were left behind in the house he used as a base of operations at George Mason University. Buchanan, Charles Koch, Scott Walker… they are/were aware of the need to keep their long term plans hush-hush. Hide the true intent to eliminate social security, public education, and anything else paid for with tax dollars. Use taxes to pay for police and the military, to protect the assets of the .01%, and everything else gets privatized. Pay to play with our Congress and federal courts. Read the book and see that is is fully noted and referenced. If you believe in the world as taught at G. Mason U. or Virginia School of Law, then that would explain the views of Buchanan and the like.

I have read multiple reviews/comments from people who actually DID know or work with Buchanan who state that this book totally misrepresents Buchanan. Including some who say it’s as if the author did not even read much of Buchanan’s work! Perhaps because she knew she would have gullible readers like Patrick who would swallow her message without discernment.

Read a book before you write a commentary about it. Otherwise, you are encouraging stupidity. I read it, as well as Dark Money, and I do not like the direction these libertarians are taking us. A zero sum game where only money is power does not bode well for humans or the planet we live on. Pretending to be an oppressed taxpayer while reaping the benefits of everything taxes have brought us in the USA is such a ruse. There are a variety of people who are “less fortunate” and claiming that they just need to work harder is hardly an intelligent statement, and as anti-Christian as it can be, despite claims of religiosity among the power brokers who use the claim for economic and political advantage. Once again, read a book before your next commentary.

[…] I don’t know anything about how autism is measured, so I can’t agree or disagree with her assertion. Though I’m tempted to reflexively disagree because MacLean’s book on Buchanan was incredibly shoddy. […]

“…I have not read the book.” Well…I have, and regardless of the details you might take exception to, the overall thrust is spot on. Buchanan eased us along the classical path from democracy to oligarchy. Satan can use the term “freedom” to his own ends.

[…] charity to the political actors with whom they disagree. Indeed, one defender of public choice—confessing that he has not read MacLean’s book—notes that MacLean benefited from public funding …. Gotcha, Professor […]

[…] P.P.S. It’s possible that the border bureaucrats were acting because of bias, of perhaps profiling Serrano because of his Latino heritage. But I never hurl that accusation without some real evidence. Unlike some people. […]

Matthew,
No doubt wealthy elites of every era do try to protect what they’ve got. The rest of what you say seems like arrant nonsense.

The Declaration of Independence laid out the Founders lofty ambitions of liberty and justice for all. But reality cannot be ignored. The Constitution was written based on the practical realities that existed in the late 18th century. Eliminating slavery and allowing virtually all adults to vote was not politically feasible in that era. The Constitution was still radically liberating for that day, even if you can’t see it.

Even if the Founders did not really mean the egalitarian principles espoused in the Declaration, they wrote it and signed it. And those principles set the tone for the future elimination of slavery and extension of the vote to women. That’s what people like MLK Jr and others believed. And that makes a lot more sense than “America was made for the Koch brothers.”

What she doesn’t seem to get at is the point that another Buchanan named Pat Buchanan made in “Deconstructing America”: America was more or less designed from its inception to be run by wealthy white oligarchs. There are a lot of flowery words about “equality”, “liberty”, and “justice” in the preamble to the Constitution but it’s all what we’d now call “corporate PR”; the Founding Father’s didn’t really believe what they were writing, and didn’t really intend those ideals to extend to anyone other than wealthy property owners. If they did they wouldn’t have written the Constitution the way it is.

Which is why trying to smoosh European-style social democracy into American politics is the square peg into a round hole. America wasn’t made for everyone, it was made for the Koch brothers and James Buchanan.

And the first treatise on how the “godless liberals” were conspiring to undo this beautiful state of affairs was published in 1797.

[…] From a negative review of the reviews of the new book Democracy in Chains: The Deep History of the Radical Right’s Stealth Plan for America: A Taxpayer-Funded Smear Job of Professor James Buchanan […]

hmm….. it is part of the propagandist’s moral equivalency diatribe… the American south is the moral equivalent of national socialist Germany… it is almost never stated directly… but the implications are clear… Americans born in the south… particularly in rural areas… are ku-kluckers at worst… or racists at best… and any contribution they make to society at large is tainted with the thought processes associated with slavery… and oppression…

[…] As is true of GMU Econ alum Dan Mitchell, I haven’t yet read Nancy MacLean’s Democracy in Chains: The Deep History of the Radical Right’s Stealth Plan for America. And I’m unlikely to do so any time soon, for what I’ve read and heard about it, this book is a work of fiction masquerading as a work of non-fiction. MacLean, I gather, tries to show that the scholarship of my late Nobel laureate colleague, Jim Buchanan, somehow fueled efforts by right-wing plutocrats to enrich themselves at the expense of the masses. […]

Great rebuke of academic nonsense. I took two classes from Buchanan during the late 60s. I took his Ph.D. public choice exam in 1969 and frequented his office often around 7am. The idea that he was a racist is unadulterated nonsense.

Fantastic article sir. It shows how the left operates and how they weigh sin. If you don’t goose step with them you are hateful and bigoted. Never try and bring an argument to be heard when a smear works.

No wonder academia is almost as useful as the MSM, or a flag pin on Obama.